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Aon presenter warns hospital consolidation is driving higher prices in Northern California
Summary
Aon consultant Mike Clark told the San Francisco Health Service Board that hospital and provider consolidation has raised prices in Northern California, citing UC Berkeley and Health Care Cost Institute data showing regional inpatient/outpatient prices 30% higher and premiums roughly 10% higher than other markets.
Mike Clark, a consultant with Aon, told the San Francisco Health Service Board that consolidation among hospitals, physician groups and payers has contributed to higher prices for services in Northern California and for San Francisco Health Service System (SFHSS) members.
Clark reviewed multiple studies and data sources and said the trend is ‘‘decades long’’ and often proactive, driven by systems seeking market share and integration. He cited a University of California–Berkeley study and other analyses reporting that inpatient and outpatient procedures in the Bay Area are roughly 30 percent higher on average and that premiums can be about 10…
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